Airbus to Sell 430 Planes to Indigo for $49.5 Billion

Pete Saunders |Thursday, November 16, 2017

Airbus clinches biggest order in its history

Announcing the deal on Wednesday (15 November), Airbus said U.S. investment firm Indigo Partners would be buying 430 aircraft A320s worth $49.5bn (£37.6bn) on catalogue prices, though a bulk-buy order of this size would carry discounts.

The deal was struck with Phoenix-based Indigo Partners, a private equity firm that owns Denver-based Frontier Airlines and also backs Mexico's Volaris airline, Hungary's Wizz Air and Chile's JetSmart.

Until Wednesday, the only major deal announced at the Dubai Air Show came on Sunday, when long-haul carrier Emirates purchased 40 Boeing 787-10 Dreamliners in a $15.1 billion deal.

Airbus Chief Executive Tom Enders left the air show on Monday, though sales chief John Leahy remained at the event in an effort to catch up on negotiations delayed by urgent talks prompted by the unexpected suspension of the A380 deal. A320neos list for $108.4 million apiece and A321neos at $127 million.

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The deal with veteran airline investor Bill Franke is expected to roil the low-priced industry and add another twist to the race between Airbus and Boeing for plane orders.

The deal was worth $49.5 billion at list prices.

In addition, Airbus and Pan-American Indigo Partners' four portfolio airlines have signed Wednesday a Memorandum of Understanding (MoU) for the purchase of 430 additional Airbus A320neo family aircraft, marking the European aircraft carrier's largest single announcement ever, Airbus said in an e-mailed statement.

For instance, Indigo Partners likely received a discount in the neighborhood of 45% to 48%, Airways senior business analyst Vinay Bhaskara told Business Insider.

Why are the deals so big?

The Indigo Partners deal is the single largest order by number of aircraft that any individual plane maker has received. The developments came ahead of the biennial air show closing on Thursday.

So far, there's been little news for Airbus, which has pinned hopes of continuing production of its A380 double-decker jumbo jet on Emirates, the world's largest operator of the aircraft.

The largest worldwide airline in the world, Emirates, made public today their over 15 billion dollars commitment for 40 Dreamliners of Boeing 787-10. It has 165 Boeing 777s in its fleet today and took possession of its 100th A380 earlier this month.

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